Yates' Celtic Bookmakers Collapses

The first high-profile economic casualty of 2011 in Ireland is one of the country's most outspoken, straight-talking and influential men.

Ivan Yates is a former government minister with Fine Gael, and someone who had a realistic chance of becoming Taoiseach, before he left politics voluntarily to pursue business interests.

He is now the host of a daily breakfast current affairs show on Newstalk radio, a political pundit and newspaper columnist, and one of the country's biggest bookmakers.

And it was that gamble on gambling that has left him facing financial ruin.

As the economy shrank and the public reined in its discretionary spending, his bookmaking empire Celtic Bookmakers, which he founded in 1987, has gone bust.

It was taken into receivership last week, owing at least €6m to Allied Irish Bank.

Attempts will now be made to sell the chain's 47 shops around Ireland and to save as many of the 237 jobs as possible.

Money raised will be used to offset the bank debt and pay other creditors.

But in a series of frank media interviews, Mr Yates acknowledged that even after the receivership process ends, he and his wife Deirdre will be left with massive residual debts, as they had given personal guarantees on many of the major bank loans.

"I'll have to sit down with the bank and work that out," he said "I could face bankruptcy, I don't know yet, that's a matter for the mercy of my creditors really."

Mr Yates admitted he's fearful of losing his home and the 160-acre farm in Enniscorthy, Co. Wexford which has been in the family for four generations.

He also said he had concerns about the bungalow, in which his elderly mother lives, as it had been used as security for some loans.

Mr Yates said he had looked at all the different solvency options over the past few months, and decided receivership was the best way to protect the jobs of as many people as possible.

Any unprofitable shops will be closed down, and the receiver will seek to renegotiate rents and other terms for the 'good' ones, which will then be sold as going concerns.

He said he believed at least 25 of the shops, and around 100 jobs, could be saved.

At its peak in 2006/07, Celtic Bookmakers was making €4m a year, but the economic crisis has had a devastating impact.

Mr Yates said telling his staff about the company's collapse had been harrowing and painful on human level.

"I take full responsibility," he said, "There's no shirking that. I was the boss. I called all the decisions. There is no hiding place for me on that.

"There are lots of things I could blame... the recession and so on. But what's the point?"

Mr Yates has taken a number of weeks off from his radio show to deal with the receivership issues, but plans to return to air towards the end of the month.

"I've lost a bit of my mojo to be honest. I feel demoralized. I have no long term plans right now I'm just taking one step at a time."